THE PENSION system should not be changed, Aegon has revealed after a survey showed opposition to proposals to place restrictions on pension freedoms by the Work and Pensions Select Committee.

Aegon found there is broad support to leave the current system untouched. This comes as pension freedoms gets closer to reaching its third anniversary.

The Work and Pensions Select Committee carried out an inquiry into whether or not there are risks associated with pension freedoms and there were suggestions they may recommend the government imposes new restrictions.

Roughly 600 people were surveyed, with a mixture of Aegon customers and general members of the public taking part in the poll. The results found 72 percent of people believe pension freedoms help people transition into retirement.

Any attempt to remove freedoms for those without other secure retirement income would prove hugely unpopular according to the survey.

Approximately 500 retired people attend a demonstration against cutting their retirement salary within austerity measures imposed by the Greek government at Kotzia Square in Athens, Greece

Greek pensioners shout slogans during a demonstration against planned pension cuts in Athens

However, one in four people said they would be in favour of increasing the age at which they could access their pension. Pension freedoms entitle anyone aged 55 or over can take out parts of their pension. Most surveyed believe they will not access their pension until age 60.

The survey revealed 80 percent of people want choice over where to invest their pension when moving into flex-access drawdown.

An individual can choose to go into flexi-access drawdown from the age of 55 (or earlier, if a lower protected pension age applies or if the ill health conditions are met) as an alternative to purchasing an annuity or taking an Uncrystallised Funds Pension Lump Sum.

Equal numbers agreed and disagreed when questioned about whether restrictions should be implemented for people who cannot show they have enough other secure income to cover their essential cost in retirement.

Around 66 percent said they would consider seeking advice to make decisions about their retirement income and 61 percent thought it would be a good idea to require those who had not taken advice to seek guidance from Pension Wise.

Steven Cameron, pensions director at Aegon said: “As the third anniversary of the pension freedom approaches there has been talk in some circles of restricting access. This has largely been prompted by concerns that people may run out of money in retirement by overspending or invest unwisely and lose their savings.

“However, the consensus amongst those we spoke to is that the freedoms should remain broadly unchanged. They’re seen as hugely helpful as a means of gradually moving out of the workforce by enabling people to start drawing an income that they can supplement with part time work.”

Mr Cameron went onto explain that any attempt to restrict pension freedoms for those without any other alternative source of secure income in retirement would be very risky politically and consequently divide the nation.

The Government announced pension freedom in the 2014 Budget to start in the 2015/16 tax year. It means anyone aged 55 and over can take the whole amount as a lump sum, paying no tax on the first 25% and the rest taxed as if it were a salary at their income tax rate.